Career Counseling
The Career Counseling Specialization provides students with the knowledge, theory, and skills to work as effective counselors/career development specialists, and consultants in a variety of settings: community-based agencies, schools (K-12), colleges and universities, private practice, business, industry, and government. Students are trained to facilitate a holistic career development/career decision-making/planning process with groups and individuals that integrates personal, social, and career needs. Students develop the skills to address current issues such as career self-reliance, work/family/life balance, multiculturalism, diversity, and lifelong learning.
Marriage, Couple & Family Counseling
The Marriage, Family and Child Counseling concentration provides students with the knowledge, theory, and skills to work as effective counselors/therapists in a variety of settings: community-based agencies, public and private agencies, non-profit organizations, private practice, and school based wellness centers supporting student mental health. The Marriage, Couple, and Family concentration meets all the educational competencies required by the California State Board of Behavioral Sciences (BBS) for licensure as a Marriage and Family Therapist (LMFT). Emphasis is placed on training individuals to become social change agents and to work in diverse settings. Students also learn how to address developmental and preventative concerns.
Rehabilitation Counseling
The Rehabilitation Counseling concentration provides students the opportunity to gain several specialized skills for working with individuals with disabilities, addiction, and co-occurring disorders. Students in this program are prepared to work in a wide variety of settings, including private practice, community agencies, private organizations, college campuses, and state departments. Students develop skills to understand medical and psychosocial aspects of disability and its impact on co-occurring disorders including substance abuse and clinical mental health.
Students are eligible for their Licensed Professional Clinical Counselor License (LPCC) as well as their Certified Rehabilitation Counseling (CRC) Credential.
School Counseling with Embedded PPS-SC Credential
The School Counseling concentration is designed for individuals who seek to become elementary, middle, or secondary school counselors. This program meets the requirements for the K-12 California Pupil Personnel Services-School Counseling (PPS-SC) Credential. Students in this program are prepared to function as key members of an educational team seeking to optimize children’s academic, socio-emotional, and career development. Students obtain the expertise necessary to lead the educational team in working collaboratively with a broad range of education and human service professionals, paraprofessionals and community representatives to identify, develop, implement and evaluate programs that provide key services to both the individual child as well as the systems and subsystems in which the child interacts. Credential: The PPS-SC Credential at Sacramento State is not offered as a stand-alone credential. Only those students accepted into the School Counseling master’s degree are eligible to earn their PPS Credential.
Master’s Culminating Experience
All MS Counseling students acquire 100 hours in Practicum, under faculty supervision providing counseling services through either the Center for Counseling and Diagnostic Services (CCDS) or a K-12 school site in the community. Over the course of the final year, students must accrue between 600-800 hours of experience in the community (under faculty AND site supervision) as an aspect of the Culminating Experience. Furthermore, all students must pass a comprehensive examination. This prepares students for licensing exams when seeking licensure or credentialing.
Counselor Preparation and Comprehensive Examination (CPCE): Students enroll in EDC 500 (1 unit) in their final semester and complete their culminating examination, the CPCE is a national exam used in counselor education programs. The areas assessed include the following content areas:
(C1) Professional Orientation and Ethical Practice;
(C2) Social & Cultural Diversity;
(C3) Human Growth & Development;
(C4) Career Development;
(C5) Counseling & Helping Relationships;
(C6) Group Counseling & Group Work;
(C7) Assessment and Testing; and
(C8) Research and Program Evaluation.
Tips for Success
Our Counselor Education Ambassadors are here to help mentor you through the application process. Our Student Counseling Society is here to help mentor you through your program. Our cohorted model helps build relationships with peers as you develop your professional skills. Our student leadership routes help you build your leadership skills and our Chi Sigma Iota Chapter helps you build your national presence and visibility. Our student centered faculty advising helps build your relationship with faculty and provides faculty mentoring. We have built in ways to involve our interested students in local, regional, and national scholarly activities including presenting with faculty. If you are ready to develop the clinical skills needed to work with a wide variety of clients and patients, and you are a relational people person, we are here to support your professional journey. The key to success in our counseling program is building on the support provided and following your cohort sequence, we will place our student interns and help you navigate the licensing and credentialing processes post-grad, so we are looking for passionate and flexible individuals that are ready to dive into building their clinical skills.
Student, Alumni, & Faculty Videos
Dave Ramsey is a personal finance guru and media personality. At the age of 26, Dave Ramsey was bringing home a quarter of a million dollars a year and had a $4 million real estate portfolio. Two years later he lost everything. Today Ramsey, 60, is one of America’s most trusted sources for financial advice. His syndicated radio program, The Dave Ramsey Show, is among the top five talk radio shows in the United States and is heard by 13 million listeners each week on more than 600 radio stations, according to Ramsey's website.
Ramsey is transparent about his investment style. He encourages his followers to avoid investing in individual stocks and purchase mutual funds that have a long track record of good performance. Personally, his equity investments are allocated into four types of mutual funds: growth, growth and income, aggressive growth, and international.
Besides mutual funds, Ramsey owns a portfolio of rental properties. His real estate investment philosophy is based on acquiring properties without the use of debt financing.
Dave Ramsey has come a long way since filing for personal bankruptcy in his early years. With his estimated net worth of $200 million, he's living proof that anyone can turn a bad financial situation around. Ramsey made his first million, lost it, and then rebuilt an even larger fortune in a relatively short period.
Key Takeaways
- Dave Ramsey is a well-known financial guru and author with a nationally syndicated radio show and other media presence.
- Before becoming a financial pundit, Ramsey saw both early success and bankruptcy.
- Ramsey employs Christian values to help convey his message of financial prudence and saving.
- Dave Ramsey is transparent about his investment style, and he encourages his followers to avoid investing in individual stocks and purchase mutual funds with a long track record of good performance.
- Ramsey's net worth is estimated to be around $200 million as of 2021.
Early Life and Education
Ramsey was born Sept. 3, 1960, and he grew up in a household that instilled a strong work ethic. In Live Like No One Else, a 20-minute documentary on his life, Ramsey tells the story of when he was 12 years old and asked his father for money to purchase a popsicle. He said his father responded to his request by saying, “You are old enough to get a job. That’s where money comes from.”
That conversation with his father inspired Ramsey to become an entrepreneur. That same day he printed 500 business cards at the local print shop for his first venture: a lawn care business. Throughout his school years, he had a number of other businesses, one of which sold leather bracelets. Ramsey said his early business ventures taught him valuable lessons like customer service and the importance of keeping your word.
Three weeks after turning 18, Ramsey passed his real estate license exam. He used the commissions he made from selling property during college to help pay his tuition. As a child, he had been exposed to the world of real estate, and in his book Dave Ramsey's Complete Guide to Money, he explained, "My parents were in the real estate business, so it has always been a big part of my life."
Notable Accomplishments
Real Estate Success and Failure
After graduating from college, he started to flip properties. As a result of having a few family connections at local banks, Ramsey was able to secure financing for his deals. At the age of 26, his real estate portfolio was worth $4 million, and his net worth was just over $1 million.
His initial success was short-lived, and he ended up filing for personal bankruptcy protection at age 28 in 1988, mainly because his largest lender—to whom he owed $1.2 million—was acquired by a bigger bank. The bank demanded Ramsey pay the entire debt off within 90 days. Shortly after receiving his first demand notice, another bank called his $800,000 worth of notes. Ramsey managed to pay the majority of the debt down, leaving $378,000 outstanding.
Financial Counseling Business
Ramsey's fall from grace led him to Christianity. He began to read the Bible and discovered that "God's word has a lot to say about money." In the documentary, Ramsey says that one day after church, a man going through financial difficulties asked him how exactly he survived his money troubles in the past. He agreed to help the man and his wife create a financial plan for their life—and so began Ramsey's financial counseling career.
Ramsey started a personal finance counseling company called The Lampo Group. His money management class started with 37 students, but membership grew to more than 350 students after a few years of operation.
Author and The Dave Ramsey Show
Following the success of The Lampo Group, Ramsey began to co-host a personal finance-focused radio show called The Money Game with his friend, Roy Matlock. Around that time, he also published his first book, Financial Peace, and leveraged his growing radio audience to help sell it.
Ramsey then launched a spin-off radio program called The Dave Ramsey Show. In each episode, people from all over the country call in to ask Ramsey a wide range of personal finance questions.
As an evangelical Christian, Ramsey uses biblical principles to teach his followers how to Strengthen their financial conditions. For example, he often advises others to avoid debt because Bible verse Proverbs 22:7 states, “The rich rule over the poor, and the borrower is a slave to the lender.”
At the age of 26, Dave Ramsey's real estate portfolio was worth $4 million, and his net worth was just over $1 million. As of 2021, his net worth is around $200 million.
What Is the Dave Ramsey Theory?
Dave Ramsey's theory for financial freedom is to incrementally build savings and pay off debts in a systematic way. He has formalized this logic into a series of "7 Baby Steps" that anybody could reasonably follow and succeed with.
What Are Dave Ramsey's 7 Baby Steps?
One of Dave Ramsey's financial literacy campaigns features seven "baby steps" that individuals and households should pursue in order to gain financial freedom. Each step should proceed when the previous one has been completed or is near completion. These include:
- Establish an emergency savings fund of at least $1,000
- Pay off all non-housing debts ASAP starting with those with the smallest outstanding balances (known as the debt snowball method)
- Increase yout emergency fund to 3-6 months' income
- Invest 15% or more of your gross monthly income into a retirement account like a 401(k) or IRA
- Start college funds (if you have children) in qualified accounts like 592 plans and ESAs
- Pay off your mortgage as early as possible
- Build wealth
Is Dave Ramsey a Billionaire?
No. latest estimates show that Dave Ramsey has a net worth of around $200 million.
The Bottom Line
From a very early age, Dave Ramsey understood there was value in a day’s work. As a child, he started several different business ventures to earn extra pocket money. His impeccable work ethic helped him become a millionaire by the age of 26. A few years after reaching the million-dollar net-worth milestone, Ramsey filed for personal bankruptcy.
Since then, he has created a business empire that revolves around using his previous money mistakes and Bible scriptures to teach smart money-management practices. Today, millions of Americans have turned to the teachings of Dave Ramsey to guide them along the path to financial security and wealth.
Drexel University School of Education - Online
The School Principal Certification program was designed to produce school leaders who are knowledgeable about current theories and strategies in leadership and change. Principal certification is perfect for teachers who are looking to take the next step in their careers.
How to Become a School Principal
Drexel’s 24-credit School Principal Certification program prepares teachers to be leaders in schools who empower teachers and students to achieve optimal success.
The Pennsylvania Administrative Certificate, Principal K–12, was designed to develop school leaders who can:
- Lead schools collaboratively to solve complex problems in a framework of leadership standards.
- Educate students to achieve 21st century learning goals.
- Mentor and coach teachers in instructional and assessment decision-making.
- Reflect on practice to new action and research.
- Partner with schools/districts to mentor new leaders.
- Demonstrate competencies in team building and conflict resolution.
Principal Certification Program Eligibility & Admission Requirements
The applicant’s transcripts and professional experiences are evaluated in relation to Pennsylvania state certification requirements. Applicants must meet be certified teachers or counselors and meet the general admissions requirements for graduate studies at Drexel University.
Candidates will be recommended for the PA Administrative Certificate, Principal K–12 upon successful completion of all course and Praxis requirements and upon verification of three years of satisfactory professional school experience on a state-issued certificate appropriate for the assignment.
Principal Certification Courses & Curriculum
Coursework requirements for the PA Administrative Certificate, Principal K–12 include 24 credits of specific pedagogy as outlined below. Students must achieve the grade of B or better in each graduate level course. The program can be completed in as little as one year, depending on your plan of study.
The online School Principal Certification curriculum and course descriptions may be viewed in the Drexel University Course Catalog.
Principal Certification candidates are required to take the School Leaders Licensure Assessment exam, test code 6011 (computer-based only). PDE reserves the right to change the required Praxis exam for Principal Certification. Please check PDE's website before registering for any exam required by PDE to ensure that your registration meets PDE's current requirements.
How to Apply to the Principal Certification Program
The Principal Certification program is taught 100% online. You can get started by filling out the Drexel Online application.
Genetic Counselors are health professionals with specialized graduate degrees and experience in the areas of medical genetics and counseling.
In clinical settings, genetic counselors provide information and support to individuals who have or are at risk of having birth defects or genetic conditions, as well as to their families. They analyze family history information, interpret information about specific disorders, discuss the inheritance patterns, assess the risk to individuals, and review available options for testing or management with families. In addition to informative counseling, genetic counselors also provide supportive counseling to help individuals and families cope with and adapt to their altered circumstances.
Some genetic counselors also work in research settings, where they use the same diagnostic skills to discover how disorders are inherited and evaluate what can be done to treat them.
Genetic counselors often have teaching roles, in addition to their clinical or research work. They are involved in educating medical residents, medical students, genetic counseling students, physicians, other health care providers, and the general public, about human genetics.
Educational Requirements
Most students enter the field by receiving a bachelor's degree from a variety of disciplines, including biology, genetics, nursing, psychology, public health and social work. In order to become a Certified Genetic Counselor (CGC©), one must obtain a Master's degree in Genetic Counseling from an ACGC Accredited Program. Once all requirements have been met, one may apply and sit for the Certification Examination.
Median Salary 2018
According to the Bureau of Labor Statistics, the median salary of a Genetic Counselor in 2018 was $80,370.
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Information retrieved from Science Buddies: Genetic Counselor and ABGC: Certification exam FAQs.
Attachment-Based Family Therapy Training
What does training in ABFT consist of?
There are three levels to ABFT training with the final level culminating in certification. Level I consists of a 1 day and 3-day Introductory workshop. Level II consists of 22 weeks of supervision and a 3-day advanced workshop. Level III consists of tape review leading to certification. The certification process can be completed in as little as approximately 1 year, but does not have to be. This is described in more detail in our Therapist Certification Process Document [PDF]. Participants can move through these levels and stop when they want or complete the full program. Each level is described below.
Continuing education credits are offered for the Level 1 workshops and webinars and Level 2 workshops
For an agency looking to implement ABFT, we find that just training therapists may not be enough. Implementation and sustainability of a manualized, empirically-supported treatment requires a high level of commitment and systems change on the part of an agency or treatment program. There are several challenges and innovations for the agency to consider before training staff. These are described in our Dissemination and Implementation Starter Packet [PDF].
We now offer a special online program for graduate students. This program offers training to professors so that they can teach the class and curriculum to help structure the program
Launching January 2022! An online self-paced ABFT Training Course for individual therapists to take day one of our training program.
Do the workshops fulfill State required training in Suicide Prevention?
Our Introductory workshops meet the Suicide Prevention licensure requirements for mental health professionals in the following states:
- California: AB-89 Psychologists and AB-1436
- Indiana: HB 1430 Suicide Awareness and Prevention
- Kentucky: KRS 210.366 Training in suicide assessment, treatment and prevention for Psychologists and Social Workers
- Nevada: AB:93 Suicide Prevention and intervention
- New Hampshire: SB 33 CE requirements for mental health practitioners on suicide prevention
- Pennsylvania: Act 74 – CE in assessment, treatment and management of suicide risk
- Tennessee: SB 489 Suicide prevention, assessment and screening, treatment, management, and postvention
When can someone call themself an ABFT Therapist?
Before completing the certification process, therapists in training may say they are conducting ABFT informed work. Therapists that have been certified may refer to themselves as ABFT certified therapists.
How does someone get on the therapist list?
Once therapists begin participating (or have previously participated) in a supervision group, they can opt to have their contact information listed on the ABFT Training Program website as an ABFT Trained (not certified) Therapist. Upon completion of the Level II requirements, they will be moved to the Level II Trained ABFT Therapist list. Once certified, their contact information will be moved to the ABFT Certified Therapist list.
Training Opportunities in ABFT
Level I: 1-Day and 3-Day Introductory Workshops
1-Day Introductory Workshop or Webinar
Lecture and therapy tapes provide a brief overview of the entire model. This includes an overview of the theory, research and the clinical format/protocol of the therapy. Faculty review how attachment theory, emotional regulation and trauma resolution inform the delivery of this experiential treatment approach. We also review the goals and structure of the five treatment tasks that provide a road map for delivering this interpersonally focused psychotherapy effectively and rapidly.
Benefits of the 1-Day Workshop or Webinar
By attending the 1-day introductory workshop or webinar, attendees will have a basic understanding of how to use attachment theory to guide family intervention. Attendees will also gain a general introduction to the task structure of the model.
Target Audience
The target audience for the 1-day ABFT training is Case Workers, Counselors, Couple and Family Therapists, ER Physicians, Health Care Administrators, Frontline MH staff, Mental Health Professionals, Primary Care Physicians, Psychiatrists, Psychiatric Nurses, Psychologists, Psychotherapists, SAP Team members and Social Workers.
Training Format Options for Day 1 of the Introductory Workshop or Webinar
The 1-day introductory workshop is offered as a(n):
- In-person workshop at Drexel University or off-site
- Full-day (6-hour) webinar
- 2-part, 3.5-hour online interactive webinar series (7-hours of content over two modules)
- Self-paced online module (Coming soon!)
- Brief course for graduate students proctored by a local professor
Accreditation
We offer APA and Pennsylvania State Board LPC/LMFT/LSW/LCSW CEs for the 1-day workshops and webinars. Please see here for a full description.
Many states accept APA CEs for Social Workers, Licensed Marriage and Family Therapists, and Licensed Professional Counselors. Some states also accept other state board's CEs. Please check with your local licensing board to verify CEs you can use.
Course Registration at Drexel University
https://drexel.edu/cnhp/academics/continuing-education/Health-Professions-CE-Programs/ABFT_3_Day/
3-Day Introductory Workshop
Day 1
On Day One, lecture and therapy tapes are used to provide an overview of the model including theoretical foundation and clinical strategies of ABFT. Faculty review how attachment theory, emotional regulation and trauma resolution inform the delivery of this experiential treatment approach. We also review the goals and structure of the five treatment tasks that provide a road map for delivering this interpersonally focused psychotherapy effectively and rapidly.
**This is the same as the 1-day Introductory Workshop. When therapists have completed the 1-day workshop previously, they do not have to repeat Day One of the three day introductory workshop.
Days 2 & 3
Days Two and Three build on Day one and provide a more in-depth look at the procedures and process involved in facilitating ABFT. Case discussion, tape review and role-play deepen the participants understanding of the approach. Throughout Days 2 and 3, therapists are also taught how to use the ABFT adherence checklists.
Attendance is limited to 30 people (per trainer) so that everyone can experience hands on attention from the Trainer.
Benefits of the 3-Day Workshop or One-Day Webinar and Days 2 & 3 Workshop
Days 2 And 3 provide a more in depth exposure to the scaffold of each task. We review extended clips of therapy tapes, talk about challenges and then role play the core elements of each task. This gives therapist a more practical sense of how to apply the model with at least moderately cooperative families. The goal is to learn to apply the basic structure, not to modify the model to more difficult or different kinds of families. That comes in supervision and the advanced training.
Target Audience
The target audience for the entire 3-day workshop is Counselors, Couple and Family Therapists, Mental Health Professionals, Psychiatrists, Psychiatric Nurses, Psychologists, Psychotherapists and Social Workers. Day 1 of the 3-day Workshop is also appropriate for Case Workers, ER Physicians, Health Care Administrators, Frontline MH staff, Primary Care Physicians, and SAP Team members.
Training Format Options for the 3-Day Introductory Workshop
Day 1 is offered as a(n):
- In-person workshop at Drexel University or off-site
- Full-day (6-hour) webinar
- 2-part, 3.5-hour online interactive webinar series (7-hours of content over two modules)
- Self-paced online module (Coming soon!)
- Brief course for graduate students proctored by a local professor
Days 2 and 3 are offered as a(n):
- In-person workshop at Drexel University or off-site
- 4-part 3.5-hour online interactive webinar series
- Semester course for graduate students proctored by a local professor (Coming Soon!)
Accreditation
We offer APA and Pennsylvania State Board LPC/LMFT/LSW/LCSW CEs for the 3-day workshop and Day One webinars. Please see here for a full description.
Many states accept APA CEs for Social Workers, Licensed Marriage and Family Therapists, and Licensed Professional Counselors. Some states also accept other state board's CEs. Please check with your local licensing board to verify CEs you can use.
Course Registration at Drexel University
https://drexel.edu/cnhp/academics/continuing-education/Health-Professions-CE-Programs/ABFT_3_Day/
Level II: Supervision and Advanced Workshop Leading to Level II Trained Therapist
Supervision
After the initial 3-day Level 1 workshop, training therapists are eligible to begin a series of 22 fortnightly, 60-90 minute (depending on group size) individual or group case consultation phone calls with an ABFT certified consultant (~1 year). Trainees are expected to discuss their current cases in which they are applying ABFT. Therapists are required to send a short case write-up using the ABFT Case Write-up Outline when they present a case. In addition, they are expected to present 5-10 minute recordings of their therapy sessions. Supervision groups have a limit of 7 people per 60-minute groups and 12 people per 90-minute group.
Individuals or agencies who do not want to commit to the certification process can contract for a minimum of 11 supervision sessions at a time.
Individuals or agencies may participate in as many rounds of 11 supervision sessions as they desire.
Benefits of Supervision
Supervision sessions help therapists who have attended the 3-day introductory workshop implement ABFT more effectively with clients. During supervision, therapists learn how to conceptualize from an ABFT framework so that they can utilize ABFT with a variety of different clients, presenting problems, and difficult situations. Through presenting 5-10 minute videos of sessions, therapists receive detailed feedback on the moment-by-moment decisions that occur in therapy. Additionally, the brief videos help therapists hone their ABFT specific skills. ABFT Supervisors also help therapists identify and work through person-of-the-therapist issues that arise when doing this interpersonal, emotionally deep work.
Target Audience
Therapists in the U.S. need to have at least a master’s degree in social work, mental health counseling, clinical or counseling psychology, or couple’s and family therapy. If therapists are not licensed and/or are graduate students, they need to be employed somewhere where they are receiving supervision. Internationally, therapists need to have local certification or licensure allowing them to practice therapy. ABFT Supervisors do not take on legal responsibility for cases.
Training Format Options for Supervision
- In-person when supervisors and supervisees live in the same area
- Online via a HIPPA secure web-conferencing system
3-Day Advanced Workshop
The 3-day Advanced Workshop is a follow-up, intensive, supervision workshop with some didactic presentations. This workshop, helps advance therapist’s ABFT skills. Participants discuss person of the therapist issues as they relate to ABFT and learn about the use of emotion-deepening skills in the context of ABFT. During the advanced training, a certified ABFT trainer provides supervision via live supervision (when possible), and role-play. In preparation for the training, we ask therapists to think about their biggest challenges in utilizing ABFT with families in Tasks 1-5. As many live supervision sessions as possible are scheduled during the 3-day advanced training.
Attendance is limited to 30 people (per trainer) who have previously attended the 3-day Level 1 workshop. Ideally, attendees have also participate in the supervision program as well. This way all of the attendees come to the advanced workshops with a high level of knowledge and experience with the model.
Benefits of the 3-Day Advanced Workshop
The Advanced Workshop helps solidify ABFT skills. Participants gain an understanding of how their own attachment history creates barriers or can help facilitate their delivery of therapy. They learn how to utilize their own personal experiences in life to build empathy and understanding of their clients’ experiences. Additionally, with practicing emotional deepening skills in role plays and receiving feedback, participants leave with a new understanding of how to deepen their ABFT work with clients. In this workshop we also talk more about how to adapt and or modify ABFT with more challenging clients.
Target Audience
The target audience for the 3-day Advanced workshop is Counselors, Couple and Family Therapists, Mental Health Professionals, Psychiatrists, Psychiatric Nurses, Psychologists, Psychotherapists and Social Workers who have previously attended the 3-day Level 1 Introductory Workshop. Attendees do not have to participate in ABFT supervision to attend the Advanced Workshop but it is preferred.
Training Format Options for the 3-day Advanced Workshop
- In-person workshop at Drexel University or off-site
- 6-part 3.5-hour online interactive webinar series
Accreditation
We offer APA and Pennsylvania State Board LPC/LMFT/LSW/LCSW CEs for the 3-day Advanced workshop. Please see here for a full description.
Many states accept APA CEs for Social Workers, Licensed Marriage and Family Therapists, and Licensed Professional Counselors. Some states also accept other state board's CEs. Please check with your local licensing board to verify CEs you can use.
Course Registration at Drexel University
https://drexel.edu/cnhp/academics/continuing-education/Health-Professions-CE-Programs/ABFT_Advanced/
Level II trained ABFT Therapist
In order to achieve the status of a Level II Trained ABFT Therapist, therapists must complete the following activities:
- Participate in 22 supervision sessions.
- Present at least 4 cases during supervision utilizing the case write-up or case conceptualization form. Case presentations do not have to be from the same case.
- Show at least 2 video excerpts of cases during the course of supervision.
- Attend the ABFT Advanced Workshop.
- Complete the ABFT exam and receive at least an 80%.
OR
- Complete the yearlong ABFT program at KU Leuven University.
- Complete the ABFT exam and receive at least an 80%.
Level III: Consultation Leading to Certification - Therapy Tape Review
After attending the Advanced Workshop and participating in Supervision (supervision does not need to be finished), trainees begin submitting video recordings of complete (i.e., 1 hour) ABFT sessions for review by certified supervisors. Trainees submit a minimum of 10 tapes at a rate of one to two videotapes a month. Tapes should be of latest sessions so that therapists can demonstrate their use of feedback from the group supervision sessions and recordings submitted for review. The ABFT supervisor informs the therapist which tasks or portions of a task to submit. When submitting tapes, therapists must provide a case write-up (template provided) and self-feedback on their tapes with suggestions for how to Strengthen portions of their sessions that are not consistent with ABFT or could be improved in general. Therapists also rate their own tapes with the ABFT adherence measure. ABFT Certified Supervisors review the tapes and provide in-depth written feedback, adherence ratings and offer a 20-minute phone consultation (as needed) regarding the tape.
Completing all 10 tapes does not guarantee that someone is certified. A therapist may need to submit additional tapes (at additional cost) if they have yet to sufficiently develop certain skills. However, we have found that with the level of feedback we provide, most therapists are ready for certification review after 10 tapes.
Certification in ABFT does not expire.
Benefits of Therapy Tape Review
Participating in video review assures that therapists are using ABFT with fidelity. Therapists can feel confident that they are implementing the model the way it is intended. We are confident that certified ABFT therapists can represent the work as it is intended. Certification has become a standard clinical training procedure throughout the world of dissemination of empirically supported treatments.
Target Audience
Therapists in the U.S. need to have at least a master’s degree in social work, mental health counseling, clinical or counseling psychology, or couple’s and family therapy. If therapists are not licensed and/or are graduate students, they need to be employed somewhere where they are receiving supervision. Internationally, therapists need to have local certification or licensure allowing them to practice therapy. ABFT Supervisors do not take on legal responsibility for cases. In addition, therapists must ensure they have sufficient clinical time to treat ABFT clients (at least 2-3 clients at a time).
Training Format for Therapy Tape Review
Therapists send all materials including therapy recordings to ABFT supervisors via LiquidFiles (http://www.liquidfiles.net/tour/compliance.html), which is a secure FTP site. Supervisors store therapy sessions on encrypted hard drives until they are reviewed. Once reviewed, therapy sessions are deleted. Supervisors send feedback (not containing PHI) via email. If consultation calls are requested, they are conducted over Zoom, a HIPPAA secure web-conferencing system (zoom.us).
ABFT Continuing Consultation
If therapists desire supervision beyond their 22 supervision sessions or becoming certified, they may pay for ongoing supervision.
ABFT Webinars
We offer a variety of live webinars on ABFT ranging from 45 minutes to 6.5 hours. We offer the 1-day Introductory Workshop and Day One of the 3-Day Introductory Workshop via Webinar format. The 1-day/Day One workshop can be offered as a live full day workshop or a 3-part, 2- hour webinar series.
ABFT Online University Graduate Student Training Program
General Information to Professors
The ABFT Training Program now offers a fully supported University curriculum for a professor to teach a 9 to 16-hour module of ABFT in a university course or as an extracurricular program. A professor and at least 7 students register for the program and we supply all the materials listed below.
- Streaming access to 6 lectures by Drs. Diamond and Levy
- Live Q &A with ABFT Treatment Developers
- Streaming access to 7 video tapes recordings of therapy sessions demonstrating the essential ABFT skills & teaching guide for professors
- Student Clinical Manual
- ABFT Selected Published Works Packet
- Instructor manual with role-play activity suggestions (optional)
- Student and Faculty Evaluations
- Certificate of Completion for Students (must pass post-test at 80%)
Course Description
This 9-16 hour program is equivalent to the 1-day/Day one ABFT Introductory Workshop. It is designed to be used in the following ways: embedded in a semester course, outside of the curriculum as a special training, summer intensive or other short programing material.
Details About the Course
- Total time is approximately 9-16 hours. The variation in time depends on how many times the therapy videos are reviewed and if role play exercises are utilized.
- A professor proctors the course. This includes organizing students and location, verifying student attendance, running technology.
- The professor facilitates the class sessions which entails showing the 6 pre-recorded lectures (40-60 minutes long).
- Professors facilitate a review of 7, 6-8 minute recorded ABFT therapy excerpts for each task (time to review excerpts is 30-50 minutes). A training manual is provided which highlights essential ABFT principles and strategies demonstrated in the therapy session recording excerpts.
- The ABFT Training Program provides one “live” Q & A session with an ABFT Treatment Developer during the course via web conferencing. Students can prepare questions for this session throughout the course.
- Each student is required to read the ABFT book.
- Students are provided with a Student Clinical Manual which contains all the PowerPoint slides, 5-task overview sheets, and other clinical aids.
- A program evaluation process is included with the program. This consists of a simple pre and post evaluation tool to demonstrate increased knowledge. Local professors are free to add any additional evaluation tools.
- A certificate of completion of the 1-day ABFT Introductory Course is provided at the end of the course to students (if they pass the post test at 80%)
- The professor is invited for free to attend one of the three day introductory ABFT workshops either in Philadelphia or at some other location that is sponsoring a workshop.
Professor Requirements
We recommend that professors attend our 3-day introductory workshop to become more familiar with the course content. Admission to the 3-day workshop at Drexel University is free for professors teaching the course (a $475 value).
Eligibility to Take the Course
- Students must be enrolled in a graduate program pursuing a degree in the mental health field (art therapy, counseling, couples and family therapy, creative movement therapy, music therapy, psychology, psychiatry, psychiatric nursing, social work etc.).
- A professor must be willing to facilitate the course with students.
- A minimum of 7 students are required to initiate the course.
Cost
- $99 per student for the 6 lectures (minimum of 7 students), plus supplementary recorded therapy excerpts, live Q&A, Student Clinical Manual, ABFT Selected Published Works Packet, and professor training manual.
- There is no training requirement or implementation cost to the professor.
Course Registration - Registration is now open!
Each student and professor must register for the course. Fees are only for students. There is an option during registration for the University to pay the fee for students (when applicable).
Fundamentals of ABFT Online Self-Paced Course
The ABFT Training Program now offers a self-paced online course equivalent to the live Day 1/Part One ABFT Introductory Workshop. This course takes approximately 8 hours to complete.
Details About the Course
- Course contains 6 interactive pre-recorded lectures where ABFT treatment developers, Dr. Guy Diamond and Dr. Suzanne Levy, provide an overview of the model including theoretical foundation and clinical strategies of ABFT. Faculty review how attachment theory, emotional regulation and trauma resolution inform the delivery of this experiential treatment approach. They also review the goals and structure of the five treatment tasks that provide a road map for delivering this interpersonally focused psychotherapy effectively and rapidly.
- Course contains 7 recorded excerpts from demonstrations of ABFT therapy sessions illustrating core components of each task.
- Course access is provided for 3 months, so participants can flexibly complete at their own speed and convenience.
- Participants will receive a Trainee Manual including the slides for the 6 lectures, FAQs about ABFT, and an overview of the ABFT training process.
- CE’s are provided for this course at an additional cost.
Cost
- Regular Registration: $199/person
- Graduate Student: $110/person
Course Registration
Click here for more info about the course & registration
Supervisor and Trainer Training for Organizations Implementing ABFT
When organizations choose to implement ABFT we understand the investment they are making. Thus, sustainability is of the upmost importance when investing in training staff in an empirically supported treatment. As a result, we encourage organizations to have some of their staff become trained as in-house ABFT Supervisors. Additionally, for larger organizations anticipating new staff needing to be trained in ABFT, we are able to train staff to become in-house ABFT Trainers.
Becoming a Certified ABFT Supervisor and Trainer does not mean being an independent teacher of ABFT. Certified ABFT Supervisors and Trainers work collaboratively with the Drexel ABFT Training Program, which remains involved in providing oversight of training activities, final certification of therapists, and determining future procedures for training and evaluating trainees. Although a supervisor is certified to supervise new therapists within their organization, they are not authorized to independently certify clinicians as ABFT therapists. Certification is accomplished through collaboration with the training center in Philadelphia. We are not looking to be over controlling of people committed to ABFT, but rather maintain a standard of quality across all training programs.
Certified ABFT Supervisor Training
Those interested in becoming a Certified ABFT Supervisor must first become a Certified ABFT Therapist in order to eligible for the training. The training includes course work in EFT (recommended), providing supervision under supervision, reviewing ABFT therapy tapes, and demonstrating competence in the ABFT Adherence Rating Scales. The training and evaluation of becoming a supervisor is a competency-based task. We select trainees with the anticipation of success and work closely with them to provide feedback throughout the training process so they are aware of their ability to successfully complete the training process.
Certified ABFT Trainer Training
To train to become a Certified ABFT Trainer, candidates must meet the following criteria: be a Certified ABFT Therapist and Certified ABFT Supervisor. The training includes a 4-day workshop and submitting a series of ABFT lectures for feedback and evaluation. The training and evaluation of becoming a trainer is a competency-based task. We select trainees with the anticipation of success and work closely with them to provide feedback throughout the training process so they are aware of their ability to successfully complete the training process.
ABFT Practicum
The Center for Family Intervention Science is launching a new ABFT practicum starting in July 2022 for advanced graduate students. Students will participate in a one-year clinical training program where they will be trained and supervised to work with families using ABFT. The training will be geared to prepare students for ABFT certification. Students will be working with families in the context of current ABFT research studies. Students will get the experience of using ABFT for diverse clinical issues including trauma, depression, substance use, and bulimia.
Disclosure: This article is not meant to treat or diagnose any mental health disorder. If you buy through links on this page, we may earn a small commission.
(Ad) Online therapy is a convenient alternative to traditional in-person therapy and is quickly becoming one of the most popular ways to seek mental health care.
The best online therapy services offer access to a wide range of licensed therapists who are available for remote sessions via phone, online chat, text message, and live video. Not only is online therapy just as effective as in-person therapy, but it’s also more affordable in most cases.
Unfortunately, not all online therapy platforms are created equal and choosing the right online therapy provider can feel like a daunting task.
To help you find the best online therapy, we’ve reviewed the top virtual counseling services. We rated each online therapy provider on a variety of factors such as type of specialties offered, therapist qualifications, communication methods, price, reviews, and features.
Here are our top picks for the best online therapy services for 2022.
The 7 Best Online Therapy Platforms for 2022
#1. BetterHelp: Best Online Therapy Site Overall
BetterHelp is one of the world’s largest and most well-known online therapy providers. It’s gained a reputation as the premier online therapy platform since its founding in 2013 because it offers a massive range of licensed therapists capable of dealing with many types of mental health concerns.
BetterHelp is a great starting point for people looking for the best online therapy service. It offers a user-friendly experience, and the dedicated app makes it simple to organize sessions and choose your preferred communication type.
The online platform has also expanded into several sister sites that address specific issues affecting certain population demographics. If you need specialized teen, couples, or LGBTQIA+ counseling, these Better Help sister sites may offer more effective therapy for your requirements.
Types of Communication
BetterHelp offers an array of communication options:
- Phone calls
- Live chat
- Unlimited text messaging
- Video chat
Specialties
Thanks to BetterHelp's wide range of licensed therapists, the platform can help with many mental health issues, including (but not limited to):
- Stress
- Anxiety
- Depression
- Addiction
- Eating disorders
- Trauma
- Insomnia
- Self-esteem concerns
- Grief
The site focuses primarily on talk therapy techniques, including cognitive behavioral therapy, psychoanalysis, mindfulness, and eye movement desensitization and reprocessing.
While talk therapy can be extremely beneficial to most people, some individuals may require medication to get the most out of their therapeutic treatment. Generally, psychiatric physicians must be the ones to prescribe psychotropic medications. Unfortunately, BetterHelp doesn't offer psychiatric or medication management services through its online therapy program.
How the Process Works
Before starting the signup process, BetterHelp provides clear information about how it works and its overall process. This information includes how the platform matches therapists and patients, communication options, and links to mental health resources.
The signup process is relatively involved, with an extensive questionnaire that asks about your background and mental health concerns. After the first round of questions, you can create a BetterHealth account and continue with the process.
After your first login, BetterHelp will lead you through the second set of questions, which focus on finding the right therapist for your needs. The platform will then match you with an online therapist and request payment. BetterHelp has only one payment plan with a price that varies depending on your therapist and location. If you’re happy with the pricing and therapist selection, you can pay. You can also apply for financial aid, if necessary.
Once you’ve paid for the month, you can choose your communication method and wait for your new therapist to get in touch. Most people hear from their therapist within a day or two, but some may need to wait for up to a week to start their session.
Pros:
- Simple pricing plan
- Only licensed therapists
- Multiple communication methods
- Clean and user-friendly interface
- Ease of switching therapists, if necessary
Cons:
- No psychiatrists or medication options
- No free trial or initial consultations
- Inability to choose your own therapist
- Fluctuating prices, depending on service demand
Click Here to Visit The BetterHelp Website to Learn More
#2. ReGain: Best Virtual Counseling for Couples
ReGain is a sister platform to BetterHelp that focuses on helping couples. The site offers 8,000 licensed marriage and family counselors who can help couples deal with relationship problems. The goal of ReGain is to provide couples — or even individuals — who have relationship issues with a safe space and easy-to-navigate interface. With multiple communication options and flexible scheduling, ReGain has earned its reputation as one of the best online therapy platforms for couples.
The platform also contains an extensive knowledge base of informative articles and other resources that address common relationship issues.
Types of Communication
Users can access their licensed marriage and family therapist using the ReGain app or via the following communication methods:
- Live video chat
- Phone calls
- Text messaging
- Live chat
Specialties
While ReGain focuses primarily on couples therapy, it provides extensive counseling for most relationships, including platonic, romantic, or familial. The platform has experienced family therapists to address concerns such as:
- Attraction and attachment
- Dating
- Recovering from domestic violence
- Infidelity
- Intimacy
- Divorce
- Parenting
- Break-ups
- Setting boundaries
How the Process Works
As with most virtual therapy services, your ReGain journey starts with completing an extensive questionnaire. This survey identifies your concern and gets information about your background and expectations. You can complete this questionnaire individually or with your partner.
Once you've completed the questionnaire and created an anonymous account, ReGain will request payment. Once you've paid for the month, ReGain will match you with a licensed marriage and family therapist.
Once matched, you can access a private chat room, accessible to you, your therapist, and your partner. You can start chatting at any time, and your therapist will attempt to respond as quickly as possible.
Pros:
- Specialized focus on relationship counseling
- Easy-to-use platform and plenty of helpful resources
- Strong security measures in place to protect your privacy and data
- Unlimited messaging
- Ease of switching therapists
Cons:
- No licensed psychiatrists or medication management services
- Inability to choose your own licensed mental health professional
- No free trial
Click Here to Visit The ReGain Website to Learn More
#3. Pride Counseling: Best Online Counseling Service for LGBTQ People
Pride Counseling is a virtual therapy platform with licensed professional therapists who understand the particular challenges facing people from these communities.
Pride Counseling is a sister site of BetterHelp, and it features the same user-friendly interface, signup process, and pricing structure. It also keeps to the high standards of having only trained mental health professionals such as family therapists, licensed clinical social workers, and clinical psychologists to ensure that users get the support they need.
Types of Communication
Like most top online therapy platforms, Pride Counseling offers several ways to communicate with your therapist. These include:
- Unlimited text messaging
- Live video calls
- Live chats
- Telephone calls
Specialties
While all Pride's counselors focus on helping LGBTQIA+ individuals, many subspecialize in certain mental health issues, such as:
- Anxiety
- Stress
- Depression
- Trauma
- Family/relationship conflicts
- Eating disorders
- Gender dysphoria
- Bullying
- Rejection
Counselors also offer multiple approaches, including cognitive behavioral therapy, psychotherapy, journaling, and other talk-therapy techniques.
How the Process Works
The first step in accessing Pride Counseling's virtual counseling service is to answer a short questionnaire about your background and therapy goals. Once you've completed the questionnaire, you can create an anonymous account and wait for the system to pair you with an online counselor.
Pride Counseling works on a monthly subscription model and provides income-based financial assistance. Once you've made your first payment, you get access to the full range of therapy services, but if you're dissatisfied, you can cancel via the Pride Counseling platform at any time.
The platform allows you to switch therapists, giving you plenty of space to find the right licensed therapist.
Pros:
- Stringent privacy protocols to protect your identity and data
- Flexible communication methods
- Therapists committed to providing support for LGBTQIA+ individuals.
- Ability to switch therapists at any time
Cons:
- No access to medication management services
- No health insurance acceptance
Click Here to Visit the Pride Counseling Website to Learn More
#4. Teen Counseling: Top Rated Online Therapists for Teens and Parents
While many adults look back on their teen years with nostalgia, being a teenager can be extremely challenging. Teenagers, as well as their parents, face many distinctive obstacles that can affect their mental health and well-being. Both parents and teenagers can find this period especially frustrating, and teen therapy can help everyone cope with the situation.
Teen Counseling is a sister site in the BetterHelp group of online therapy platforms, and it specializes in mental health conditions affecting teenagers. It’s one of the few online therapy services that cater to under-18s, though teens still need parental consent to use and pay for those services. It has a large range of licensed family therapists and psychologists with expertise in teen therapy.
Types of Communication
Teen Counseling is accessible via a desktop or mobile app for Android and Apple phones. Users can communicate with their mental health professionals via:
- Text messaging
- Live chat
- Video calls
- Phone calls
Specialties
Teen Counseling offers support for a wide range of teen-related mental health concerns, including:
- Anxiety
- Eating disorders
- Depression
- Bullying
- Anger management
- Self-esteem
- Stress
- Family or romantic relationship issues
How the Process Works
All the best online therapy services start with a questionnaire, and Teen Counseling is no different. The questionnaire asks about a teen’s background and current situation to help it pair them with the right therapist.
Teenagers or parents can answer the questionnaire, but the platform requires parental consent to continue with therapy and handle payments. Note that counselors are unable to provide a mental health diagnosis, so this is not the site to use for diagnostic purposes.
Once the teenager has created an account and paid for the first month, Teen Counseling will supply them access to a private room, accessible only to the user and therapist. While therapists might inform parents with general updates, Teen Counseling is committed to maintaining its users’ privacy and confidentiality.
Teen Counseling uses an algorithm to pair teenagers with the right online therapist, who then contacts the teenager via live chat. Users can schedule live video sessions once a week and get unlimited messaging (though it may take a little while for the therapist to respond).
Teen Counseling offers a single payment plan that provides access to everything on the platform. However, prices may still change, depending upon the choice of therapist, service demand, and location. The platform also offers income-based financial assistance but doesn’t accept insurance.
Pros:
- Mental health professionals who understand teens' unique challenges
- Clean, easy-to-use website and app
- Wide variety of communication options
- Therapy sessions that are confidential
Cons:
- No medication management service
- Required parental consent to access the platform
- No free trial
Click Here to Visit the Teen Counseling Website to Learn More
#5. Talkspace: Best Online Mental Health Counseling for Psychiatry Services
Talkspace was one of the first online therapy platforms and still offers high-quality mental health services today. Established in 2012, Talkspace has aimed to make therapy more accessible to those who need it most.
The platform has evolved constantly to meet user needs. It remains one of the most popular online therapy sites, offering access to over 3,000 licensed mental health professionals specializing in the most common conditions.
Types of Communication
Talkspace provides users with several communication methods, including:
- Phone calls
- Live chat
- Text messaging
- Video calls
However, unlike other online therapy sites, Talkspace explicitly controls the number of video chats you can have per month. The lowest-tier plan doesn’t have any live sessions but still offers unlimited text messaging during the workweek.
Specialties
Talkspace started out as a talk-therapy platform but has expanded its online counseling services to include couples counseling, teen counseling, and (most notably) psychiatric services. With over 3,000 licensed professional therapists, Talkspace offers assistance for:
- Anxiety
- Stress
- Depression
- Post-traumatic stress disorder
- Relationship issues
- Addiction
- Parenting or family issues
- Social anxiety
- Bullying
- Attention deficit hyperactivity disorder
- Bipolar disorder
How the Process Works
The main Talkspace website contains a signup page, FAQ pages, and a short demonstration video that shows how the platform works. Talkspace is accessible via a desktop and through a mobile app.
The first step of the signup process is to fill in a short questionnaire that assesses your needs and background. Talkspace will send you an email containing your account details after this step.
The second step is to choose your payment plan. Talkspace has three tiers of plans that increase in price, depending on how many live sessions you want per month. These plans include:
- Unlimited Messaging Therapy Plus, which includes text, video, and audio messaging without any live sessions
- Unlimited Messaging Therapy Premium, which includes text, video, and audio messaging and one 30-minute live session per month
- Unlimited Messaging Therapy Ultimate, which includes text, video, and audio messaging and four 30-minute live video sessions per month
Note: If you want psychiatric or medication management services, you'll need to pay for these in addition to the monthly talk therapy plan.
Once you've chosen your plan, the platform will look for matching therapists and supply you several options. Each therapist has a bio outlining their specialty, experience, and methodology. These can be useful in deciding which one to pick.
Once you've chosen your therapist, the platform will supply you access to a secure chat room. You can use this room to send your therapist as many messages as you want and schedule your live sessions using the Talkspace app.
Pros:
- Accepts some health insurance plans
- Offers psychiatric care and medicine management
- Provides an extensive range of services, including couples counseling, teen counseling, and LGBTQIA+ counseling
- Has a slick interface
Cons:
- Live sessions are only 30 minutes
- Therapists may not immediately answer messages
- No free trial is available
Click Here to Visit the Talkspace Website to Learn More
#6. Online-Therapy.com: Best Web Therapists for Cognitive Behavioral Therapy
Unlike many other online therapy programs, Online-Therapy.com exclusively uses a cognitive-behavioral therapy (CBT) approach. CBT is a peer-reviewed talk-therapy method that can help people cope with many mental health concerns.
What makes Online-Therapy.com unique is that all its resources and therapies center on CBT. The site has an online toolbox of CBT tools, such as self-led worksheets, journal prompts, meditation exercises, and even yoga videos. All licensed mental health professionals on the site have extensive experience in CBT as a methodology and will help you get the most out of the experience.
Types of Communication
Online-Therapy.com allows users to interact with their licensed professional counselors in several ways, including:
- Text
- Phone calls
- Video calls
- Live chat
Specialties
While the platform focuses on only one technique, CBT is flexible enough to address many mental health conditions, including:
- Agoraphobia
- Anger issues
- Anxiety
- Depression
- Post-traumatic stress disorder
- Panic attacks
- Stress
- Obsessive compulsive disorder
- Bipolar disorder
- Borderline personality disorder
Unfortunately, Online-Therapy.com doesn't offer medication management or psychiatric services.
How the Process Works
Online-Therapy.com provides visitors with a massive amount of information, even before signing up. You can browse through the self-led CBT tools, check out the FAQ, and get a clear idea of how the process works.
The signup procedure is like those of many other online mental health services: You complete a questionnaire about your background, mental health issues, and therapist preferences. The site will make several recommendations based on therapist availability, and you can select one after reviewing their bios.
Online-Therapy.com has three subscription-based plans:
Basic plan: Allows you to message your therapist from Monday to Friday and receive daily messages from your therapist during the work week. Also provides access to the online CBT toolbox.
Standard plan: Same as the basic plan, plus a weekly 30-minute live therapy session and the ability to message your therapist at any time.
Premium plan: Includes everything in the lower tiers plus two 30-minute live sessions per week, and priority responses from your therapist.
Your therapist will use text messaging or your live video sessions as part of the talk therapy portion of your treatment, but you'll still need to complete the self-led worksheets to get the most out of the platform.
Pros:
- Tons of additional resources
- Choice of your therapist based on their bio
- Easy-to-use website
- Affordable pricing plans
- All therapists with extensive CBT experience
Cons:
- No medicine management or psychiatric services
- Does not accept health insurance
- Limited scope of treatment — if CBT doesn't work for you, then you need to find another platform
Click Here to Visit the Online-Therapy.com Website to Learn More
#7. Calmerry: Best for OCD (Obsessive Compulsive Disorder)
Calmerry is a relative newcomer to the online therapy space. The site’s founder saw the need for accessible, affordable mental health care during the pandemic and launched Calmerry in 2020 to address this need. While the site still has minor teething troubles, such as information-thin FAQ posts, it offers excellent support services for a wide range of mental health problems.
Types of Communication
Calmerry provides various communication methods, allowing users to feel comfortable in their therapy sessions. These methods include:
- Live video sessions
- Text messages
- Live chat
- Live audio sessions
Like many of its competitors, Calmerry doesn’t offer live chat sessions in all of its plans. Only higher-tier plans provide 30-minute sessions, while the lower-tier plans offer only text messages and asynchronous communication.
Specialties
Calmerry offers counseling for many common mental health issues, including:
- Anxiety
- Depression
- Stress
- Relationship issues
- Grief
- Obsessive-compulsive disorder
- LGBTQIA+ issues
The virtual therapy platform does not offer psychiatric services, and its licensed therapists aren't able to prescribe medication. It's also important to note that while Calmerry offers couples and teen counseling, each individual needs to pay for a subscription to take advantage of the service.
How the Process Works
Unlike most online therapy programs, Calmerry lets you set up an account before the intake questionnaire. The questionnaire covers your background, therapist preferences, and concerns.
Another feature that sets Calmerry apart from other online therapy companies is that it relies on a team of people to assign a therapist to a client. Most online therapy platforms use an algorithm (similar to ones found on dating apps) to pair customers and therapists, leading to potential mismatches. Having a pair of human eyes can make the difference and help reduce the number of therapists you may have to go through before settling on the right one.
Once you’ve picked your therapist from a selection, Calmerry will let you choose between three payment plans:
- Messaging provides unlimited messaging to your therapist, one to two responses during the week, and a personalized therapy plan.
- Messaging + One Live Video provides access to all the messaging services plus one live session per month.
- Messaging + Four Live Video provides access to all the text messaging services plus four live sessions per month.
You can start messaging your therapist immediately after making your first payment. Most people get a response within the day, but some report waiting up to five days to get a message back. The good news is that you can switch therapists at any time, without penalties, allowing you to browse around until you find one who works for you.
Pros:
- Uses human matching instead of an algorithm
- Allows you to schedule remote therapy sessions to fit your routine
- Provides extensive customer support, including a detailed knowledge base
- Provides multiple plans so you can tailor your virtual counseling to your needs
- The trial one-week subscription acts as a good introduction to the platform
Cons:
- Required signup process before you can see prices
- Lack of medication management
- Individual therapy, but no group sessions
Click Here to Visit the Calmerry Website to Learn More
What Is Online Therapy?
Online therapy is an alternative to traditional therapy where instead of meeting in a therapist’s office, you meet online or via video or phone call. Treatments consist of two broad categories, based on how patients would like to communicate with their therapist: synchronous and asynchronous.
Synchronous treatments refer to interventions that take place in real time, such as video calls, live chats, and phone conversations. Synchronous online therapy sessions closely resemble traditional therapy, where the therapist and patient interact directly.
Asynchronous treatment means there’s a delay in communication between therapist and patient. Text messages are the most common form of asynchronous treatment, when a patient can message the therapist at any time but may have to wait several hours or even days until their therapist can respond.
The best online therapy programs offer a mix of asynchronous and synchronous communication options—patients can schedule live chats or video sessions but can also message their therapist at any time. This blend of communication channels allows patients to find the best fit regarding scheduling, availability, and need.
How We Ranked the Best Online Therapy Services
Finding the right online therapy platform can feel intimidating for people who need support. You can easily find hundreds of mental health apps that seem to offer the same services but vary wildly in service delivery, therapies offered, and pricing.
We used numerous criteria in our search for the best online therapy platform. These included therapy specialties, communication methods, and pricing plans and gave us a good idea of which online counseling platforms offer legitimate and helpful mental health services.
Type of Therapy Offered
Some online therapy services specialize in providing general, affordable online therapy, while others focus on specific mental health or lifestyle issues. For instance, Pride Counseling offers help for people from the LGBTQIA+ communities, while ReGain offers relationship counseling for couples and families. Other platforms, such as BetterHelp and Talkspace, offer more generalized services addressing common mental health conditions.
We also looked at therapeutic interventions that the platforms offered. Almost all online platforms focus on talk-based treatments, including online cognitive-behavioral therapy, psychotherapy, and eye movement desensitization and reprocessing (EMDR). Certain methodologies work better for some types of disorders (for instance, EMDR works best for post-traumatic stress sufferers), while other approaches are suitable for a wide range of issues. It’s important to find an online counseling platform that offers the type of talking therapy you need.
While almost all the best online therapy platforms work exclusively with licensed therapists, only a few provide access to medical doctors such as psychiatrists. This can be a drawback for people who need medication management for their mental health problems because only physicians can prescribe medication and make a formal mental health diagnosis.
Therapist-Matching Process
Finding a therapist whose technique works for you can be challenging, whether you’re considering in-person therapy or online therapy.
Online therapy companies streamline the process by using a matching algorithm to pair clients with the right therapist. When you sign up for an online therapy platform, you’ll answer a questionnaire about your therapist preferences, including gender, background, and religion. The platform will take these answers and the type of therapy you’re looking for and scan its database for licensed mental health professionals who fit the bill.
While almost all online therapy platforms use this model, some will assign an online therapist to you, while others will let you pick one from a curated list. Some platforms use humans instead of an algorithm to match users to therapists because humans are better at picking up nuances and may provide better matches.
But what happens if you don’t click with your assigned online therapist? All reputable online therapy providers will allow you to change therapists for any reason without penalties. While it may take time to find the right match, it’s always important to carry on searching until you find a therapist you’re completely comfortable with and who can offer you the services you need.
Communication Methods
The best online therapy platforms offer several communication methods, allowing users to feel comfortable using their preferred communication style. The most common ways to get in touch with your online therapist include:
- Phone calls
- Live video sessions
- Text messages
- Live chat sessions
Many platforms allow for unlimited messaging, meaning that you can contact your therapist via text message at any time, though you may have to wait a while for a response.
Phone calls, video, or chat sessions are all scheduled services that allow you to interact directly with your therapist. They are relatively similar to in-person therapy.
Taking advantage of several communication methods is the best way to get the most out of your virtual counseling platform.
Pricing Plans
While generally more affordable, online therapy can still get expensive, especially if you want several video sessions per month. To make things even more complex, some online counseling platforms have different tiers of services, each with differing benefits.
Unfortunately, few platforms accept insurance, though some insurance providers are willing to reimburse some of the costs according to telehealth services guidelines. It’s a good idea to check with your health insurance provider to determine your options before committing to an online platform.
Therapist Credentials
One of the most important questions to ask about any online therapy service is whether its mental health professionals have the correct licenses. Licensing is an important step for any therapist because it allows them to practice in a certain state in their chosen specialty.
According to the American Psychological Association, the words “therapist” and “psychotherapist” aren’t protected terms in some states, meaning that anyone can advertise themselves as a therapist, even without proper qualifications. Licensing helps weed out any unregistered therapists and makes it easier to find legitimate professionals.
Online therapy companies are responsible for checking the credentials of their therapists, which is why so many services make it clear that their therapists have the necessary licenses to practice their profession.
How to Choose the Best Online Therapy for You
Every person’s therapy journey is unique, but here are several ways to narrow down the best online counseling options for your needs.
The first step should be to identify themost comfortable therapy format for you. Some people like the immediacy and flow of live video sessions, while others may prefer the slower pace of messaging and email.
Next, identify the frequency of therapy sessions you want per month. In general, people with serious mental health concerns benefit from more frequent sessions, while some people just need to touch base with their therapist once a month. Then, review the plans on various online platforms—most sites offer unlimited messaging and one or two live sessions per month.
You’ll also need to find a platform that offersthe type of service you require. If you need medication, find a site with registered psychiatrists who can prescribe medication in your state. If you’re struggling with relationship concerns, look for a site with many licensed marriage and family therapists.
The next step is to agree to a therapist. Some platforms allow you to choose your own therapist, while others will assign one automatically. No matter what matchmaking process the site uses, you should always be able to access the therapist’s credentials, experience, and specialties to ensure a good fit.
The final criterion that affects your choice of online counseling is to set up a schedule with pricing you can afford. Some platforms accept insurance, while others offer financial aid for low-income individuals, making online therapy accessible to a much wider range of people. Even if a platform doesn’t accept health insurance, some plans may reimburse a portion of the cost as a telehealth service.
Is Online Therapy Effective?
The big question surrounding remote counseling is whether it’s as effective as in-person therapy. Many studies have examined this question, and a recentmeta-analysis of current data shows that online and in-person therapy are equally effective in addressing mild to moderate anxiety disorders. Another study found online cognitive behavioral therapy to be potentially more effective than in-office therapy, largely because of improved access to mental health professionals.
That said, individuals with severe mental health disorders often benefit from immediate intervention andmay do better in a traditional therapeutic format. Ultimately, virtual therapy offers a useful alternative to a traditional therapy session, but therapists still need to decide which format is the best for their patients.
The Advantages of Getting Therapy Online
If virtual and in-person therapy sessions are similarly effective, why should you choose virtual therapy instead of seeing a licensed therapist in person? Online therapy offers several advantages that make it an appealing option for people who need support. These include:
Avoiding stigma: In some tight-knit communities, mental health conditions still carry a stigma that can be a massive barrier to seeking help. An online therapy session is completely private and offers a sense of anonymity and confidentiality that an in-person session can’t.
Convenience: Many people simply don’t have the time to organize a regular therapy session. Because online sessions have flexible schedules, it’s much easier to fit in a session without disrupting your day-to-day routine.
Ease of access and a wider choice: Some people may live far from a licensed therapist who offers the right service. Going online makes location less important, allowing people to find a therapist who meets their needs no matter where they are located. In turn, this provides a much broader selection of therapists.
Sense of intimacy: While some people may find a disconnect between a video call and in-person conversation, other people find video calls to be more comfortable. This sense of intimacy comes largely from the fact that you’re still in your home or a safe location, unlike the feeling that you’re intruding in someone’s space or find yourself in a sterile office space during an in-person session.
Types of Online Therapy Sessions
Many of the best online counseling services offer several communication methods, allowing people to choose how they interact with their therapist.
Phone Therapy
Phone therapy relies on a scheduled call session. Some people prefer the anonymity and privacy of a phone conversation rather than video chat, which can open new avenues and insights during the session.
Text Message
Text messages are an asynchronous form of therapy, which means they don’t rely on a real-time conversation.
While texting may not be suitable for deep work such as resolving the underlying causes of eating disorders or dealing with trauma, it’s a great tool for checking in. Many therapists use text messaging between sessions to encourage clients to practice their newfound coping skills.
Live Video Therapy
Often considered the best online communication tool, live video sessions are the closest to in-person sessions. They allow the therapist to pick up on body language, voice tone, and other non-verbal cues while still allowing for the convenience of remote therapy.
Online Chat
Online chat is the synchronous form of text messaging. Some people prefer organizing their thoughts or find themselves uncomfortable interacting directly with their therapist, so online chat can be a happy medium between the immediacy of a video session and the anonymity of text-based communication.
Things to Consider Before Choosing an Online Therapy Site
While online therapy is an appealing alternative to traditional therapy, make sure to ask these questions before committing to any virtual therapy website.
Are the Therapists Licensed?
A licensed therapist will have the necessary qualifications to do their work correctly. A virtual therapy service should ensure that it works with only licensed social workers, marriage and family therapists, and psychotherapists who allow you to see their credentials on the site.
Is Online Therapy the Right Option?
Online therapy has helped hundreds of thousands of people, but it may not be the right option for everyone. If you’re uncomfortable with technology or suffer from a serious condition, in-person therapy may be the better solution for your needs.
Does My Insurance Cover Online Therapy?
While health insurance companies are starting to support telehealth services, they may not cover online therapy fully. Speak to your health insurance provider first before committing to a platform—some health insurance companies may have deals with certain online platforms and may reimburse some of your costs.
Is the Site Secure?
While some of the best online therapy providers offer anonymity by allowing you to register with a pseudonym, you still have to provide information such as your email address and payment details. Many sites also need to store your chat room details, which will include all the messages between you and your therapist. Having a safe site is essential to protect your privacy and personal data.
While still not an outright requirement, try to look for sites that are HIPAA compliant. These tend to be the best online therapy sites that have high security and great confidentiality policies.
Privacy issues can also become more complex if the main user is a teenager. Teen-centric platforms like Teen Counseling require parental permission but will often still respect the teen’s privacy during sessions.
Types of Online Therapists
Almost as important as choosing the best online therapy platform is finding the right type of mental health professional. Certain therapists have specialties, and working with them from the start can save you a lot of time and effort.
Psychiatrists
Psychiatrists are medical doctors specializing in psychology and mental health. Because they have medical degrees, they can prescribe medication to address mental and physical health conditions. Some psychiatrists focus exclusively on medication, while others combine medicine with psychotherapy to provide a more holistic treatment plan.
Psychologists
Psychologists specialize in understanding human emotions and behaviors. They generally hold a doctoral degree or master’s degree and focus on helping individuals address their issues through evidence-based talk therapy. They’re the most common type of therapist on online platforms and can specialize in treating certain conditions, like depression or anxiety, using a variety of methodologies.
Licensed Family and Marriage Therapists
Marriage and family therapists focus on interpersonal conflicts in relationships. Sessions tend to focus on dealing with specific issues and resolving conflicts, but some marriage and family therapists will offer long-term therapy for couples who need more work.
Licensed Clinical Social Workers
Social workers help people cope with external issues. Just as with family therapists, licensed clinical social workers tend to offer interventions for specific problems, including:
- Social problems
- Family disputes involving domestic violence or abuse
- Substance abuse
Licensed Professional Counselors
Licensed professional counselors need a master’s degree plus two years of supervised work to qualify for their roles; they also must pass a national exam from the National Board for Certified Counselors. They guide people in dealing with issues such as:
- General stress
- Communication issues
- Addiction
- Job stress
- Anxiety
Because “counselor” isn't a protected legal term, it’s a good idea to ask for a counselor’s credentials and experience, education, and specialty to find out whether they’re the right fit for your needs.
Tips for Finding the Right Virtual Therapist
Finding the right therapist will always be a challenge. Therapists are people who will see you at your most vulnerable, and you need to feel comfortable working with them to see results.
A little bit of planning and research can help you narrow your search and stop you from wasting time switching between therapists before finding the right one for you. Here are some questions it’s wise to ask before starting your search:
What type of professional do I need? If you have a specific issue you need to address, going to a psychiatrist won’t be the best use of your time. Understanding the differences between various therapists can help you decide which one to pick.
What kind of therapy do I want? Certain conditions benefit from a particular type of treatment. For instance, CBT works great for anxiety and depression, while interpersonal therapy is better for communication and relational issues. Make sure to speak to your therapist about treatment types during your first session.
Do I have any preferences regarding my therapist’s background? According to the American Psychological Association, working with a therapist with a similar background can help form a higher-quality relationship. These preferences can include aspects such as the therapist’s age, gender, ethnicity, race, religion, or sexual orientation.
Remember that you’re never “locked in” with a particular therapist. Even if you’ve done your research and chosen what seems to be a good match, there’s no reason to continue therapy if you don’t feel rapport during the session.
Therapy is a unique relationship between therapist and patient. It requires active listening and participation from both parties. Successful therapy requires you to be honest and vulnerable, and if you don’t feel comfortable doing so, keep looking until you find a therapist you feel you can trust.
Getting the Most Out of Online Therapy
One way to increase your chances of success with a therapist is to prepare for your session. Most therapists can do a better job if their patient is prepared to maximize the benefits of each session.
Some of the ways you can prepare for your online session include:
Check your tech beforehand: Nothing is as disruptive to a therapy session as technical glitches. Not only do they interrupt the flow of the session, but they can also cause additional stress as you rush to troubleshoot and resolve connection issues.
Avoid distractions: Having a therapy session at home opens you up to potential disruptions from family members, pets, and noisy neighbors. Try to maximize your privacy, let people know not to disturb you, and mute your phone before the session.
Set goals: Work with your therapist to set achievable goals in a session. These will help your therapist offer more guided advice and provide actionable solutions instead of trying to figure out what you need from a session.
Be honest: Therapy will inevitably touch on painful or uncomfortable subjects, and talking through these can often lead to important breakthroughs in therapy. If you aren’t ready to address certain topics, be clear and honest. A good therapist will know when to move on and when to try to tackle these syllabus again.
How Much Do Online Counseling Services Cost?
While online therapy may be more affordable than in-person therapy, it can still be expensive. With few health insurance providers offering coverage for online therapy, you may need to shop around and find the balance between affordability and quality.
In general, you can expect to pay between $80 and $250 per session, depending on your location and the therapist’s expertise. More experienced therapists will charge more, and metropolitan areas tend to be significantly more expensive than rural ones. Some online providers may offer discounts on video sessions if you sign up for several months or opt for a higher-tier plan.
Many of the best online therapy websites offer different plans depending on the number of live sessions per month. You may use this to your advantage and pay only for the number of sessions you need—there’s no reason to pay for four sessions per month if you’re only checking in with your therapist.
You can also look into whether your chosen platform offers financial aid. Some platforms are willing to reduce costs for low-income users, though you may need to go through some extra hoops to access these benefits.
One aspect of online therapy pricing that confuses many people is that platforms will show per-week prices but bill only once per month. Always make sure to factor in the monthly cost because most won’t reimburse you for lost sessions if you cancel your subscription early.
Does Insurance or Medicare Cover Online Therapy Sessions?
Unfortunately, only a few online platforms accept insurance, and very few health insurance providers reimburse for online therapy. However, as some providers expand their telehealth coverage, it’s likely that support for online therapy will expand in the future.
As with any medical service, it’s always good to ask your provider and the service whether you can use your health insurance benefits or make a claim for reimbursement. Many online platforms that didn’t accept insurance in the past have started accepting certain health insurance plans, so check your platform’s stance on insurance regularly.
Who Is Online Therapy Best For?
The past couple of years since the onset of the pandemic have been incredibly stressful for most people —a latest study reported an increase in depression symptoms in adults from 8.5% before the pandemic to 27.8% during the pandemic. Online therapy represents an ideal solution for people looking for support and an appealing alternative to traditional treatments.
As with other types of therapy, online therapy has distinct advantages and disadvantages, and while it may be suitable for many people, it may not be the right option for everyone.
In general, online therapy is best for people who:
- Have a mild to moderate condition treatable with talk therapy
- Struggle to access mental health services in their area
- Need more affordable services
- Have limited mobility
- Feel more comfortable talking to someone over the phone or via text messages
- Need the anonymity and privacy of remote counseling sessions
Some people may find even the best online therapy options unsuitable. These include people who:
- Have suicidal impulses
- Wish to harm others
- Are technologically challenged
- Don't have access to reliable internet for video or phone sessions
- Have thought disorders such as borderline personality disorder or schizophrenia
- Require immediate medical intervention
- Feel more comfortable meeting in person in a neutral location
What Type of Mental Health Issues Can Online Therapy Help With?
Online therapy is effective for many issues, and most platforms will offer a list of their specialties and treatment offerings. You can expect typical online therapy services to assist with:
- Anxiety
- Depression
- Stress
- Communication issues
- Relationship concerns
- PTSD
- Panic attacks
- Anger issues
- Bullying and other teen-centric concerns
- Substance abuse and addiction
- Eating disorders
- Domestic violence and abuse if the site has licensed clinical social workers
- Trauma
- Grief
Final Thoughts on Online Therapy
Online therapy is a useful tool that can bring about meaningful change for people who need support. It offers several advantages over in-person therapy, such as being more affordable and accessible. While online therapy isn’t the right solution for everyone, it can offer a lifeline to people who need a helping hand.
Unfortunately, finding the right provider can be a challenge. Most platforms offer similar services, and navigating your options can feel intimidating and overwhelming. Not only do you need to factor in the type of therapy you require, but you also must consider pricing and therapist qualifications before reaching a decision. The fact that many platforms don’t offer free trials can make committing to one feel even more fraught.
We’ve researched many of the major online therapy options and found several that offer various services for the most common mental health problems. These platforms offer access to high-quality therapists, and some even provide options for medication if necessary. While it may take some time to find the perfect fit, these platforms are a great place to start your search.
What Is Cost Basis?
Cost basis is the original value or purchase price of an asset or investment for tax purposes. The cost basis value is used in the calculation of capital gains or losses, which is the difference between the selling price and purchase price. Calculating the total cost basis is critical to understanding if an investment is profitable or not, and any possible tax consequences. If investors want to know whether an investment has provided those longed-for gains, they need to keep track of the investment's performance.
Key Takeaways
- Cost basis is the original value or purchase price of an asset or investment for tax purposes.
- Cost basis is used to calculate the capital gains tax rate, which is the difference between the asset's cost basis and current market value.
- Most brokerages offer cost basis tracking and report any necessary gains and losses to the IRS via Form 1099-B.
- The general default method for determining cost basis by brokerages is first-in, first-out (FIFO).
Know Your Stock Cost Basis
Understanding Cost Basis
Cost basis starts as the original cost of an asset for tax purposes, which is initially the first purchase price. But the initial purchase price is only one part of the overall cost of an investment. As time moves forward, this cost basis will be adjusted for financial and corporate developments such as stock splits, dividends, and return of capital distributions—the latter is common with certain investments such as Master Limited Partnerships (MLPs).
Cost basis is used to determine the capital gains tax rate, which is equal to the difference between the asset's cost basis and the current market value. Of course, this rate is triggered when an asset is sold, or the gain or loss is realized. Tax basis still holds for unrealized gains or losses when securities are held but have not been officially sold, but taxing authorities will require a determination of the capital gains rate, which can be either short term or long term.
The IRS allows cost basis to be determined using the first-in, first-out (FIFO) method (which is the default) or specific share identification. The latter allows the investor to identify which shares were sold, however, the designation must be made in advance to the brokerage—outlining which shares are being sold.
Tax Reporting Cost Basis
Brokerage firms are required to report the price paid for taxable securities to the Internal Revenue Service (IRS) for most securities, which are reported using FIFO. Brokerages, however, are only required to report an asset sale to the IRS if the investment was made after:
- Jan. 1, 2011, for equities
- Jan. 1, 2012, for mutual funds, ETFs, and dividend reinvestment banks
- Jan. 1, 2014, for other specified securities, including most fixed-income securities (generally bonds) and options
Determining the initial cost basis of securities and financial assets for only one initial purchase is very straightforward. In reality, there can be subsequent purchases and sales as an investor makes decisions to implement specific trading strategies and maximize profit potential to impact an overall portfolio. With all of the various types of investments, including stocks, bonds, and options, calculating cost basis accurately for tax purposes, can get complicated.
In any transaction between a buyer and seller, the initial price paid in exchange for a product or service will qualify as the cost basis. The equity cost basis is the total cost to an investor—this amount includes the purchase price per share plus reinvested dividends and commissions. The equity cost basis is not only required to determine how much, if any, taxes need to be paid on an investment, but is critical in tracking the gains or losses on investment to make informed buy or sell decisions.
Brokerages use Form 1099-B to report realized gains and losses for a tax year, which is sent to you and the IRS.
Calculating Cost Basis
As stated earlier, the cost basis of any investment is equal to the original purchase price of an asset. Every investment will start with this status, and if it ends up being the only purchase, determining the cost is merely the original purchase price. Note that it is allowable to include the cost of a trade, such as a stock-trade commission, which can also be used to reduce the eventual sales price.
Once subsequent purchases are made, the need arises to track each purchase date and value. For tax purposes, the default method used by the IRS (and how most brokerages will report gains and losses) is FIFO. In other words, when a sale is made, the cost basis on the original purchase would first be used and would follow a progression through the purchase history.
Mutual fund investors have another option (besides FIFO and specific-share identification), which is the average cost basis.
For example, let's assume Lawrence purchased 100 shares of XYZ for $20 per share in June and then makes an additional purchase of 50 XYZ shares in September for $15 per share.
If he sold 120 shares, his cost basis using the FIFO method would be (100 x $20 per share) + (20 x $15 per share) = $2,300. The average cost method may also be applicable and represents the total dollar amount of shares purchased, divided by the total number of shares purchased. If Lawrence sold 120 shares, his average cost basis would be 120 x [(100 x $20 per share) + (50 x $15 per share)]/ 150 = $2,200.
There are also differences among securities, but the basic concept of the purchase price is applied. Typically, most examples cover stocks. However, bonds are somewhat unique in that the purchase price above or below par must be amortized until maturity.
For mutual funds, there might be taxable events each year if the funds are held in taxable (non-qualified) accounts, such as distributions. All amounts will be tracked by a custodian or guidance will be provided by the mutual fund firm.
Why Is Cost Basis Important?
The need to track the cost basis for investment is needed mainly for tax purposes. Without this requirement, there is a solid case to be made that most investors would not bother keeping such detailed records.
Capital gains can be as high as ordinary income rates (in the case of the short-term capital gains tax rate), thus, it pays to minimize them if at all possible. Holding securities for longer than one year qualifies the investment as a long-term investment, which carries a much lower tax rate than ordinary income rates and decreases based on income levels.
In addition to the IRS requirement to report capital gains, it is important to know how an investment has performed over time. Savvy investors know what they have paid for a security and how much in taxes they will have to pay if they sell it.
Tracking gains and losses over time also serves as a scorecard for investors and lets them know if their trading strategies are generating profits or losses. A steady string of losses may indicate a need to reevaluate the investment strategy.
Dividends
The equity cost basis for a non-dividend-paying stock is calculated by adding the purchase price per share plus fees per share. Reinvesting dividends increases the cost basis of the holding because dividends are used to buy more shares.
For example, let's say an investor bought 10 shares of ABC company for a total investment of $1,000 plus a $10 trading fee. The investor was paid dividends of $200 in year one and $400 in year two. The cost basis would be $1,610 ($1,000 + $10 fee + $600 in dividends). If the investor sold the stock in year three for $2,000, the taxable gain would be $390.
One of the reasons investors need to include reinvested dividends into the cost basis total is because dividends are taxed in the year received. If the dividends received are not included in the cost basis, the investor will pay taxes on them twice. For instance, in the above example, if dividends were excluded, the cost basis would be $1,010 ($1,000 + $10 Fee). As a result, the taxable gain would be $990 ($2,000 - $1,010 cost basis) versus $390 had the dividend income been included in the cost basis.
In other words, when selling an investment, investors pay taxes on the capital gains based on the selling price and the cost basis. However, dividends get taxed as income in the year they're paid to the investor, regardless of whether the dividends were reinvested or paid out as cash.
Examples of Cost Basis
Calculating the cost basis gets more complicated as a result of corporate actions. Corporate actions include items such as adjusting for stock splits and accounting for special dividends, bankruptcies, and capital distributions, as well as merger and acquisition activity and corporate spinoffs. A stock split, such as a two-for-one split where a company issues an additional share for every share an investor owns, doesn’t change the overall cost basis. But it does mean the cost per share becomes divided by two, or whatever the share exchange ratio ends up being following the split.
Determining the impact of corporate actions isn’t overly complicated, but it can require sleuthing skills such as locating a CCH manual from a local library or heading to the investor relations section of a company’s website. These sources usually provide plenty of detail on M&A activity or spinoffs.
Mergers
When a company you own is acquired by another company, the acquiring company will issue stock, cash, or a combination of both to complete the purchase. Payouts for cash will result in having to realize a portion as a gain and pay taxes on it.
The issuance of shares will likely keep capital gains or losses as unrealized, but it will be necessary to track the new cost. Companies guide the percentages and breakdowns. The same rules also apply when a company spins out a division into its own new company. Some of the tax costs will go with the new firm, and it will be necessary for the investor to determine the percentage, which the company will provide.
For example, if XYZ company buys ABC company and issues two shares for every one share previously owned, then the investor referred to in the previous example now owns 20 shares of XYZ company. Companies need to file Form S-4 with the Securities and Exchange Commission (SEC), which outlines the merger agreement and helps investors determine the new cost basis.
Bankruptcies
Bankruptcy situations are even more complicated. When companies declare bankruptcy, the impact on shares varies. Declaring bankruptcy does not always indicate that shares are worthless. If a company declares Chapter 7, then the company ceases to exist, and the shares are worthless.
However, if a company declares Chapter 11, the stock may still trade on an exchange or over the counter (OTC) and still retain some value. Therefore the initial cost basis calculations apply. OTC is a broker-dealer network that trades securities that are not listed on a formal exchange.
However, if the bondholder of a company emerging from Chapter 11 is given common stock in exchange for some of the bonds held before declaring bankruptcy, the cost basis becomes more complicated. The cost basis would typically be considered the fair market value of the common stock on the effective date; this value is laid out in Chapter 11 emergence plans.
Stock Splits
Thankfully, not all corporate actions complicate cost basis calculations; declaring a stock split is one such action. For example, if a company declares a 2 for 1 split, instead of owning 10 shares of ABC company, an investor would own 20 shares. However, the initial cost of $1,000 stays the same, so the 20 shares would have a price of $50 instead of $100 per share.
Inherited Stocks and Gifts
In addition to corporate actions, other situations can impact the cost basis; one such situation is receiving a stock gift or inheritance. Calculating the cost basis for inherited stock is done by taking the fair market value (FMV) on the date of the benefactor's death.
Conversely, a gifted stock is more complicated. If an investor sells the stock, the cost basis becomes the purchase price on the date the gifter bought the stock, unless the price is lower on the date of the gift. If this is the case, the tax cost can be reduced, since the stock has suffered a loss in value.
Keeping It Simple
Several methods can help minimize the paperwork and time needed to track cost basis. Companies offer dividend reinvestment plans (DRIPs) that allow dividends to be used to buy additional stock in the firm. If possible, keep these programs in a qualified account where capital gains and losses don’t need to be tracked. Every new DRIP purchase results in a new tax lot. The same goes for automatic reinvestment programs, such as investing $1,000 every month from a checking account. New purchases always mean new tax lots.
The easiest way to track and calculate cost basis is through brokerage firms. Whether an investor has an online or traditional brokerage account, firms have very sophisticated systems that maintain records of transactions and corporate actions related to stocks.
However, it's always wise for investors to maintain their records by self-tracking to ensure the accuracy of the brokerage firm's reports. Self-tracking will also alleviate any future problems if investors switch firms, gift stock, or leave stocks to a beneficiary as an inheritance.
For stocks that have been held over many years outside of a brokerage firm, investors may need to look up historical prices to calculate the cost basis. Historical prices can be readily found on the internet.
For investors that self-track stocks, financial software such as Intuit's Quicken, Microsoft Money, or using a spreadsheet like Microsoft Excel, can be used to organize the data. Lastly, websites such as GainsKeeper or Netbasis are available to provide cost basis and other reporting services for investors. All of these resources make tracking and maintaining accurate records easier.
The Bottom Line
The equity cost basis is important for investors to calculate and track when managing a portfolio and for tax reporting. Calculating an equity cost basis is typically more complicated than summing the purchase price with fees.
Continual monitoring of corporate actions is important to ensure that investors understand the gain or loss profile of a stock position, as well as ensuring that capital gains and losses are accurately reported. Although brokerage firms tend to track and report this information to the IRS, there are situations where they do not have it, such as in the case of a gifted stock. In addition to brokerage firms, there are many other online resources available to assist in maintaining an accurate basis.
The concept of cost basis is fairly straightforward, but it can become complicated. A tracking cost basis is required for tax purposes but also is needed to help track and determine investment success. It's important to keep good records and simplify the investment strategy where possible.
